ERC consults public on draft rules on CPCN issuance
The Energy Regulatory Commission (ERC) has set for public consultation the draft “Rules to Govern the Issuance of Certificate of Public Convenience and Necessity (CPCN) to Distribution Utilities (DUs) and the National Transmission Corporation (TransCo)” on 15 October 2007 (Monday) at two o’clock in the afternoon (2:00 P.M.) at the ERC Hearing Room, 15th Floor, Pacific Center Building, San Miguel Ave., Ortigas Business District, Pasig City.
Pursuant to Section 43 (p) of Republic Act 9136 otherwise knows as the EPIRA (Electric Power Industry Reform Act), the ERC is mandated to act on applications for or modifications of CPCN (including renewals), licenses or permits of franchised electric utilities. Correspondingly, it can revoke, review, and modify such certificates, licenses or permits in appropriate cases, such as in cases of violations of the Grid Code, Distribution Code, and other rules and regulations issued by the ERC in accordance with law.
A CPCN refers to the authorization issued to a DU and TransCo/Buyer/Concessionaire for the operation of a distribution or transmission system for which a franchise is required by law.
The said Rules, which directly apply to all DUs (privately-owned, electric cooperatives, and local government unit-owned) and the TransCo or its Buyer/Concessionaire, will also cover entities duly authorized to operate within the economic zones, and other duly authorized entities engaged in the distribution of electricity. The Rules specify the documents and legal processes required and the obligations of the CPCN grantee as well.
“The
Rules will establish procedures, standards, and criteria for the issuance of
a CPCN to DUs and the TransCo or its Buyer/Concessionaire,” ERC Chairman
and CEO Rodolfo B. Albano Jr. said. The Rules aim to: (1) ensure the quality,
reliability, security, and affordability of the supply of electric power; (2)
accelerate the country’s total electrification program; and (3) protect
the public interest as it is affected by the rates and services of electric
utilities and other producers of electric power,” Chairman Albano concluded.
October 10 , 2007